Green, Sustainable Investing - Why Agricultural Investments?

 

Agricultural Investments, in particular investments in green, sustainable projects, are attracting plenty of interest lately. Here, we have a look at the reason why

sustainable investment

 

Safety in Stormy Times

The finance Crisis has turned even old, reputable, well financially consolidated and intensely professionally managed businesses into high-risk investments. Currently, the stock markets do not react while they used to do. Investing in Start-Ups via private equity creates an even bigger risk, since only hardly any start-up companies are likely to survive.

Imbalance in Demand and supply

Going back to basics, and investing in fundamentals makes sense under these circumstances. The world is heading perfectly into a population of 6.8 billion people (UN: in year 2015) that will need something to eat every day. There will always be a reliable demand for basic foods. Prices may fluctuate, but there will always be a market.

impact investing

Every minute of the day, 150 individuals are added to the world population (US Census Bureau, January 2009) and they all need food. As both the population and life-span grows at a fast rate, the need for agricultural products increases rapidly.

It can be highly likely that green sustainable investments in agriculture will work extremely well in the future. We are convinced that investing in green products is really a secure way to sustainable profit.

The UN conservatively predicts that the world's population increase by more than 45% through the coming 40 years. Because of this the earth will have to feed another 3,800,000,000 people.

Within the same period, International Grains Council (a link of the leading food exporting countries) is predicting the farmland available for cereal production to fall by 0.2% - 0.5% each year for the coming Four decades.

The reasons for this are some:

• During Global Warming, deserts in Africa and Asia will grow and remove millions of hectares of potential farmland.

• The attraction and trend in growing bio-fuel and also other biological alternatives to fossils will lessen the farmland available for food production, including for that essentials such as wheat.

• Because population gets bigger, urbanisation and city developments are being created in the expense of existing and potential farmland.

• The trend has been clear throughout the last 5 years.

Since 2005 the creation of grain has been smaller than the demand. World-wide, the creation of available farmland per capita has reduced by half throughout the last 50 years, and further reductions are forecast.